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To: jbn3 who wrote (33169)	3/9/1998 3:42:00 PM
From: Jim Patterson	Respond to of 176387

re:Book value was extremely important when the physical plant, which could be sold off, constituted a main factor of a company's value. Today many companies have evolved to something new 3, You make a great example. Lets say that the market turns in your industry or for your company. Take CPQ for instance. Say that CPQ's problems become terminal for the forseeable future, or better yet, Say there is a decline in PC unit shipments, with falling revenue. In this environment, how do you value these PC growth companies, such as Dell or CPQ, or MSFT for that matter. At one time, Ford was the hottest stock on the board. I do not know, but I would imagin that at one time, it had a growth PE of 40-50 with sales growing 25-30% per year. (this is speculation) But at one time, cars were hot and ford made them affordable for everyone. Then Times got tough, BV was a tangible benchmark. What will it be when it happens or theoriticaly for some if it were to happen ? For some, think of this as mearly a mental excersise. Others may want to use this as a potential down side target. I look foward to seeing how you would value such a situation should it occur, even though you don't think it will occure. Jim